Ricardo Lara, Commissioner at California Department Of Insurance | California Department Of Insurance
Insurance Commissioner Ricardo Lara has called on the California Board of Forestry and Fire Protection to accelerate the adoption of “Zone Zero” regulations, which focus on wildfire prevention by creating a non-combustible five-foot area around homes in the state’s most fire-prone regions. These regulations are intended to help protect properties and reduce insurance costs for Californians.
Commissioner Lara’s Safer from Wildfires regulations, in effect since 2022, require insurance companies to provide discounts to homeowners and businesses that implement wildfire mitigation measures, including maintaining a clear area around structures known as Zone Zero. The Commissioner emphasized the importance of these rules in a letter to the Board, stating, “These regulations are designed to prevent future wildfire disasters by establishing an ember-resistant five-foot zone around structures in our most vulnerable areas. Finalizing consistent statewide ‘Zone Zero’ regulations will bolster my efforts to ensure property insurance remains available throughout the state while qualifying more individuals for insurance discounts. With an increasing number of insurance companies returning to the market under my Sustainable Insurance Strategy, we need a ‘whole-of-government’ approach to continue our progress.”
The Commissioner noted that insurance companies are not obligated to offer coverage in all areas, making it essential for California to implement scientifically based wildfire safety standards that can improve insurability. Legally required discounts aim to lower consumer costs, while programs such as the recently enacted California Safe Homes Act and local community initiatives are designed to help cover the expenses of implementing these safety measures. Once fully funded and operational, the California Safe Homes Act will help finance Zone Zero and other mitigation efforts through the Department of Insurance.
Recently, five insurers, including three based in California, have announced plans to expand or reopen business lines in the state under Lara’s Sustainable Insurance Strategy. This development marks a change from recent trends of insurers raising rates or leaving the market. Some companies have committed to insuring homes that meet wildfire safety standards, including Zone Zero requirements.
Communities affected by severe wildfires have already started implementing Zone Zero strategies as part of broader risk reduction efforts. Notable examples include Paradise (impacted by the 2018 Camp Fire), Berkeley (the 1991 Tunnel Fire), South Lake Tahoe (the 2021 Caldor Fire), and Marin County (which created the Marin Wildfire Authority). These communities have supported their efforts with education programs and local ordinances.
Commissioner Lara also endorsed the IBHS Wildfire Prepared Home standard for rebuilding in Los Angeles in a foreword to a recent report. He noted that investing in wildfire safety and Zone Zero measures could result in significant long-term savings for homeowners through insurance discounts and expanded coverage options outside of the FAIR Plan.
“Achieving wildfire safety at scale requires a collective effort rooted in community education and incentives aimed at those who may struggle to afford necessary improvements. Just as safe drivers or good students are recognized by insurers today, Safer from Wildfires discounts can save consumers money, promote safety across communities, and encourage mitigation efforts,” Commissioner Lara wrote.
He added, “Wildfires do not recognize city or county borders. Our strength lies in our collective resilience. Strong and consistent Zone Zero regulations will enhance safety for everyone.”
The California Department of Insurance continues its mission to protect consumers by regulating the insurance industry and overseeing fair practices statewide.
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